Our stock screener has singled out PFIZER INC (NYSE:PFE) as a promising choice for dividend investors. NYSE:PFE not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.
Understanding NYSE:PFE's Dividend
ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:PFE has been awarded a 8 for its dividend quality:
PFE has a Yearly Dividend Yield of 6.11%, which is a nice return.
Compared to an average industry Dividend Yield of 4.31, PFE pays a better dividend. On top of this PFE pays more dividend than 98.01% of the companies listed in the same industry.
PFE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.48.
PFE has been paying a dividend for at least 10 years, so it has a reliable track record.
PFE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
PFE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
Analyzing Health Metrics
A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:PFE has received a 5 out of 10:
Looking at the Altman-Z score, with a value of 2.46, PFE is in the better half of the industry, outperforming 70.15% of the companies in the same industry.
The Debt to FCF ratio of PFE (7.78) is better than 81.09% of its industry peers.
A Current Ratio of 2.38 indicates that PFE has no problem at all paying its short term obligations.
PFE has a Quick Ratio of 2.05. This indicates that PFE is financially healthy and has no problem in meeting its short term obligations.
Analyzing Profitability Metrics
ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:PFE was assigned a score of 7 for profitability:
PFE has a Return On Assets of 4.87%. This is amongst the best in the industry. PFE outperforms 89.55% of its industry peers.
PFE has a Return On Equity of 10.81%. This is amongst the best in the industry. PFE outperforms 90.05% of its industry peers.
With an excellent Return On Invested Capital value of 9.08%, PFE belongs to the best of the industry, outperforming 88.56% of the companies in the same industry.
PFE's Profit Margin of 15.29% is amongst the best of the industry. PFE outperforms 91.04% of its industry peers.
Looking at the Operating Margin, with a value of 27.00%, PFE belongs to the top of the industry, outperforming 93.53% of the companies in the same industry.
PFE's Gross Margin of 69.03% is fine compared to the rest of the industry. PFE outperforms 75.12% of its industry peers.
This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.